If you're looking to make a couple of new additions to your portfolio, then it could be worth hearing what Morgans is saying about the two ASX 200 shares listed below.
Both are on its best ideas list at present with the potential to generate double-digit returns in 2023. Here's what the broker is saying:
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Aristocrat Leisure Limited (ASX: ALL)
Morgans thinks that this gaming technology company could be an ASX 200 share to buy.
The broker believes the poker machine and digital game developer is well-placed for growth over the long term for three reasons. It explains:
We have three key reasons for being positive on ALL. They are: (1) long-term organic growth potential. ALL is better capitalised than many of its competitors and has what we regard as a strong platform to continue investment in design and development in both its land-based gaming and digital businesses; (2) strong cash conversion and ROCE. ALL is a capital-light business despite its ongoing investment in Gaming Operations capex and working capital. It has a high level of cash conversion and ROCE; and (3) strong platform for investment. ALL has funding capacity for organic and inorganic investment in online RMG, even after the recent buyback. Its current available liquidity is $3.8bn.
Morgans has an add rating and a $45 price target on its shares.
Mineral Resources Ltd (ASX: MIN)
Another ASX 200 share that has been given the thumbs up by Morgans is mining and mining services company Mineral Resources.
The broker believes that the company is well-placed to benefit from China's economic recovery. It explains:
MIN is a founder-led business and top tier miner and crusher that has grown consistently despite barely issuing a share over the last decade. Also helping our investment view is that MIN's diversification leaves it far more capable of tolerating volatility in lithium markets than its peers in the sector. We see MIN's lithium / iron ore market exposures as an ideal combination to benefit from the China gradual recover. We also see MIN as well placed to grow into its valuation, even if we see unexpected metal price volatility, given the magnitude of organic growth in the pipeline.
Morgans has an add rating and $83 price target on the company's shares.
